Yum China (NYSE:YUMC) Given Consensus Recommendation of “Moderate Buy” by Brokerages

Shares of Yum China (NYSE:YUMC) have earned an average recommendation of “Moderate Buy” from the four brokerages that are currently covering the stock, Marketbeat.com reports. One investment analyst has rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 12 month target price among analysts that have covered the stock in the last year is $59.2133.

YUMC has been the topic of a number of recent research reports. The Goldman Sachs Group reaffirmed a “buy” rating and set a $59.00 price objective on shares of Yum China in a research report on Thursday, July 30th. Weiss Ratings reiterated a “hold (c)” rating on shares of Yum China in a report on Friday, August 21st. Finally, Wall Street Zen raised shares of Yum China from a “hold” rating to a “buy” rating in a research report on Monday, August 17th.

Insider Buying and Selling

In related news, insider Duoduo (Howard) Huang sold 24,096 shares of the stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $47.08, for a total transaction of $1,134,439.68. Following the completion of the sale, the insider owned 7,589 shares of the company’s stock, valued at $357,290.12. This represents a 76.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Jeff Kuai sold 14,586 shares of the firm’s stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $47.72, for a total transaction of $696,043.92. Following the completion of the sale, the insider owned 63,541 shares of the company’s stock, valued at approximately $3,032,176.52. This trade represents a 18.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.44% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Main Street Group LTD acquired a new position in Yum China during the 1st quarter valued at about $26,000. Elyxium Wealth LLC purchased a new stake in Yum China in the fourth quarter valued at about $27,000. Ascentis Independent Advisors acquired a new stake in Yum China in the first quarter worth about $27,000. Cresta Advisors Ltd. acquired a new stake in Yum China in the fourth quarter worth about $28,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Yum China during the second quarter worth about $29,000. 85.58% of the stock is currently owned by hedge funds and other institutional investors.

Yum China Stock Performance

Shares of NYSE:YUMC opened at $45.16 on Friday. The company has a market capitalization of $15.47 billion, a price-to-earnings ratio of 16.54, a price-to-earnings-growth ratio of 1.18 and a beta of 0.09. Yum China has a 52 week low of $40.15 and a 52 week high of $58.39. The company has a quick ratio of 0.78, a current ratio of 0.96 and a debt-to-equity ratio of 0.01. The firm has a 50 day moving average of $44.85 and a 200 day moving average of $47.63.

Yum China (NYSE:YUMC) last announced its earnings results on Thursday, July 30th. The company reported $0.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.67 by $0.03. The business had revenue of $3.14 billion for the quarter, compared to analysts’ expectations of $3.05 billion. Yum China had a return on equity of 15.82% and a net margin of 7.84%.The business’s revenue for the quarter was up 12.6% on a year-over-year basis. During the same quarter last year, the firm earned $0.58 EPS. On average, sell-side analysts predict that Yum China will post 2.95 earnings per share for the current fiscal year.

Yum China Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 17th. Investors of record on Thursday, August 27th will be paid a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a dividend yield of 2.6%. The ex-dividend date is Thursday, August 27th. Yum China’s payout ratio is 42.49%.

About Yum China

Yum China Holdings, Inc operates as the largest quick-service restaurant company in China, through its ownership and franchising of brands such as KFC, Pizza Hut and Taco Bell. The company’s core business encompasses full-service and fast‐casual dining, takeout and delivery channels, as well as ancillary services including loyalty programs and digital ordering platforms. Yum China’s restaurants offer a diverse menu that adapts global brand concepts to local consumer preferences, featuring items such as soy‐marinated chicken, customized pizzas and region‐inspired side dishes.

In addition to its signature brands, Yum China has expanded its portfolio to include innovative concepts tailored to evolving market trends, such as plant‐based offerings, self‐service kiosks and mobile app integrations.